Correlation Between SBB-B and SBB-D

Can any of the company-specific risk be diversified away by investing in both SBB-B and SBB-D at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SBB-B and SBB-D into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Samhllsbyggnadsbolaget i Norden and Samhaellsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on SBB-B and SBB-D and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SBB-B with a short position of SBB-D. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBB-B and SBB-D.

Diversification Opportunities for SBB-B and SBB-D

0.96

Correlation Coefficient

SBB-B  SBB-D

Almost no diversification

The 3 months correlation between SBB-B and SBB-D is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Samhllsbyggnadsbolaget i Norde and Samhaellsbyggnadsbolaget i Nor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhaellsbyggnadsbol and SBB-B is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samhllsbyggnadsbolaget i Norden are associated (or correlated) with SBB-D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhaellsbyggnadsbol has no effect on the direction of SBB-B i.e., SBB-B and SBB-D go up and down completely randomly.

Pair Corralation between SBB-B and SBB-D

Assuming the 90 days trading horizon Samhllsbyggnadsbolaget i Norden is expected to under-perform the SBB-D. In addition to that, SBB-B is 1.04 times more volatile than Samhaellsbyggnadsbolaget i Norden. It trades about -0.01 of its total potential returns per unit of risk. Samhaellsbyggnadsbolaget i Norden is currently generating about -0.01 per unit of volatility. If you would invest  1,828  in Samhaellsbyggnadsbolaget i Norden on October 10, 2024 and sell it today you would lose (1,194) from holding Samhaellsbyggnadsbolaget i Norden or give up 65.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Samhllsbyggnadsbolaget i Norde  vs.  Samhaellsbyggnadsbolaget i Nor

Samhllsbyggnadsbolaget

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samhllsbyggnadsbolaget i Norden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Samhaellsbyggnadsbol

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samhaellsbyggnadsbolaget i Norden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SBB-B and SBB-D

The main advantage of trading using opposite SBB-B and SBB-D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBB-B position performs unexpectedly, SBB-D can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SBB-D will offset losses from the drop in SBB-D's long position.

The idea behind Samhllsbyggnadsbolaget i Norden and Samhaellsbyggnadsbolaget i Norden pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.